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Exhibit 99.1

Badger Meter News Release

 

Dan Weltzien, Vice President – CFO and Treasurer

investors@badgermeter.com

 

 

 

BADGER METER REPORTS THIRD QUARTER 2026 FINANCIAL RESULTS

 

Milwaukee, WI, October 22, 2026 - Badger Meter, Inc. (NYSE: BMI) today reported results for the third quarter ended September 30, 2026.

 

Third Quarter 2026 Highlights

•
Total sales of $235.9 million increased modestly from the prior year’s $235.7 million and improved 6% sequentially from the second quarter. Base1 sales were $230.3 million.
•
Operating earnings increased 4% year-over-year to $47.7 million, with operating profit margins of 20.2% versus 19.6% in the prior year comparable quarter. Base operating earnings of $48.0 million increased 4% year-over-year, with Base operating profit margins of 20.9%.
•
Diluted earnings per share (EPS) of $1.24, a 4% increase from $1.19 in the third quarter of 2025.
•
Increased annual dividend rate by 10% to $1.76 per share, representing the 34th consecutive year of dividend growth.

 

“We were pleased with our third quarter financial results delivering continued sequential sales and operating profit improvement” said Kenneth C. Bockhorst, Chairman, President and Chief Executive Officer. “Consistent with our expectations, third quarter sales reflected the ongoing ramp of awarded utility water projects as well as solid underlying demand trends. I want to thank our employees across the globe for their commitment, contributions and ongoing customer focus.”

 

Third Quarter 2026 Operating Results

 

Utility water sales were flat year-over-year, including $5.6 million from the UDlive acquisition. Excluding the acquisition, utility water sales increased 5% sequentially from the second quarter, yet declined 3% year-over-year, reflecting uneven AMI project pacing partially offset by higher software revenue.

Sales of flow instrumentation products increased 2% year-over-year, with strong demand across the water-focused end markets against a difficult prior year comparison.

 

Operating earnings improved 4% year-over-year to $47.7 million, representing a 60-basis point improvement in operating profit margins to 20.2%. Base operating earnings of $48.0 million increased 4% year-over-year, with Base operating profit margins of 20.9%.

Gross margins of 41.9% were 120 basis points higher than the prior year’s 40.7%. Margin improvement reflects higher sales and structural mix benefits, while UDlive gross margins include the dilutive impact of inventory fair-value step-up amortization.

 

Selling, Engineering and Administration (SEA) expenses of $51.1 million were $1.3 million higher year-over-year. The inclusion of UDlive results along with related intangible asset amortization combined added $2.3 million to year-over-year expenses. Base SEA expenses of $48.8 million declined $0.9 million or 2% year-over-year due to the benefit of appropriate spending controls and lower incentive compensation.

 

The effective tax rate for the third quarter of 2026 was 25.1%, compared to 26.1% in the prior year. As a result of the above, EPS of $1.24 increased 4% from the prior year’s $1.19.

 

Outlook

Bockhorst concluded, “As we enter the final quarter of 2026, we continue to anticipate both sequential and year-over-year Base revenue improvement, inclusive of the fewer operating days typical for the fourth fiscal quarter, and expect to sustain this growth momentum into 2027. We remain steadfastly focused on cost management actions to mitigate the uneven 2026 sales cadence, while effectively addressing ongoing material cost pressures related to broad electronics supply chain dynamics.”

 

We maintain our focus on long-term strategic priorities including advancing the multi-year opportunity funnel for both metering and beyond the meter applications. We also continue to enhance our BlueEdge® portfolio of solutions against the backdrop of a multi-decade digital transformation of the global water sector, as demonstrated by the recent launch of OneNetwork™, our real-time network monitoring and analysis software platform.

 

During the quarter we repurchased approximately $55 million of our outstanding shares and increased our annual dividend rate for the 34th consecutive year, demonstrating our commitment to returning cash to shareholders.

 

In closing, I remain excited about the value creation opportunities ahead of us as we further our vision to preserve and protect the world’s most precious resource.”

1 Adjusted metrics (“Base”) are non-GAAP measures excluding the results of UDlive acquired May 1, 2026. See appendix for reconciliations of these GAAP to non-GAAP measures.


Conference Call and Webcast Information

Badger Meter management will hold a conference call to discuss the Company’s third quarter 2026 results today, Thursday, October 22, 2026 at 10:00 AM Central/11:00 AM Eastern time. A live listen-only webcast and the related presentation will be available on the Events & Presentations section of the Company’s investor relations website. Those wishing to actively participate in the conference call must pre-register using the following link: https://events.q4inc.com/attendee/365814936

 

Safe Harbor Statement

Certain statements contained in this news release, as well as other information provided from time to time by Badger Meter, Inc. (the “Company”) or its employees, may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those statements. The Company’s results are subject to general economic conditions, variation in demand from customers, continued market acceptance of new products, the successful integration of

 

acquisitions, competitive pricing and operating efficiencies, supply chain risk, material and labor cost increases, tax reform and foreign currency risk. See the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for further information regarding risk factors, which are incorporated herein by reference. Badger Meter disclaims any obligation to publicly update or revise any forward-looking statements as a result of new information, future events or any other reason.

 

About Badger Meter

With more than a century of water technology innovation, Badger Meter provides comprehensive water management solutions through its BlueEdge® suite. This tailorable portfolio of smart measurement hardware, reliable communications, data visualization and analytics software and ongoing support and industry expertise give customers the edge in optimizing their operations and contributing to the sustainable use and protection of the world’s most precious resource. For more information, visit www.badgermeter.com.

 

 

 

 

BADGER METER, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

 

(in thousands, except share and earnings per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

235,938

 

 

$

235,651

 

 

$

660,536

 

 

$

695,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

137,089

 

 

 

139,815

 

 

 

386,587

 

 

 

406,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

98,849

 

 

 

95,836

 

 

 

273,949

 

 

 

289,083

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, engineering and administration

 

 

51,107

 

 

 

49,752

 

 

 

151,659

 

 

 

148,711

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings

 

 

47,742

 

 

 

46,084

 

 

 

122,290

 

 

 

140,372

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income, net

 

 

(188

)

 

 

(1,330

)

 

 

(1,645

)

 

 

(3,559

)

Other pension and postretirement income

 

 

(28

)

 

 

(28

)

 

 

(84

)

 

 

(84

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before income taxes

 

 

47,958

 

 

 

47,442

 

 

 

124,019

 

 

 

144,015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

12,055

 

 

 

12,365

 

 

 

31,061

 

 

 

35,956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

35,903

 

 

$

35,077

 

 

$

92,958

 

 

$

108,059

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Basic

 

$

1.25

 

 

$

1.19

 

 

$

3.21

 

 

$

3.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Diluted

 

$

1.24

 

 

$

1.19

 

 

$

3.19

 

 

$

3.65

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares used in computation of earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Basic

 

 

28,750,150

 

 

 

29,424,004

 

 

 

28,999,955

 

 

 

29,405,429

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       Diluted

 

 

28,871,187

 

 

 

29,583,384

 

 

 

29,125,127

 

 

 

29,577,619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-more-

 

BADGER METER, INC.

 

 

 

 

 

 

 

CONSOLIDATED CONDENSED BALANCE SHEETS

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

September 30,

 

 

December 31,

 

 

2026

 

 

2025

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

67,928

 

 

$

226,016

 

Receivables

 

111,826

 

 

 

112,356

 

Inventories

 

166,427

 

 

 

151,935

 

Other current assets

 

21,719

 

 

 

16,770

 

     Total current assets

 

367,900

 

 

 

507,077

 

 

 

 

 

 

 

Net property, plant and equipment

 

83,473

 

 

 

79,636

 

Intangible assets, at cost less accumulated amortization

 

157,513

 

 

 

118,496

 

Other long-term assets

 

31,957

 

 

 

32,793

 

Goodwill

 

302,805

 

 

 

235,575

 

     Total assets

$

943,648

 

 

$

973,577

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

Payables

$

70,275

 

 

$

72,299

 

Accrued compensation and employee benefits

 

21,904

 

 

 

37,619

 

Other current liabilities

 

56,117

 

 

 

40,798

 

     Total current liabilities

 

148,296

 

 

 

150,716

 

 

 

 

 

 

 

Deferred income taxes

 

16,616

 

 

 

3,477

 

Long-term deferred revenue, employee benefits and other

 

127,604

 

 

 

106,090

 

Shareholders' equity

 

651,132

 

 

 

713,294

 

     Total liabilities and shareholders' equity

$

943,648

 

 

$

973,577

 

 

 

 

 

 

 

 

 

 

-more-

 

BADGER METER, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

  Net earnings

$

35,903

 

 

$

35,077

 

 

$

92,958

 

 

$

108,059

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments to reconcile net earnings to net cash provided by operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Depreciation

 

2,636

 

 

 

2,607

 

 

 

8,297

 

 

 

8,326

 

     Amortization

 

7,555

 

 

 

6,100

 

 

 

20,804

 

 

 

17,458

 

     Noncurrent employee benefits

 

(154

)

 

 

40

 

 

 

(140

)

 

 

45

 

     Stock-based compensation expense

 

2,474

 

 

 

2,041

 

 

 

7,821

 

 

 

6,445

 

     Changes in:

 

 

 

 

 

 

 

 

 

 

 

       Receivables

 

9,252

 

 

 

2,503

 

 

 

690

 

 

 

(22,803

)

       Inventories

 

10,702

 

 

 

(5,759

)

 

 

(10,508

)

 

 

(1,740

)

       Payables

 

(27,510

)

 

 

(4,285

)

 

 

(3,515

)

 

 

11,937

 

       Prepaid expenses and other assets

 

(2,374

)

 

 

(188

)

 

 

(10,059

)

 

 

(3,276

)

       Other liabilities

 

4,790

 

 

 

13,148

 

 

 

(2,470

)

 

 

4,446

 

  Total adjustments

 

7,371

 

 

 

16,207

 

 

 

10,920

 

 

 

20,838

 

Net cash provided by operations

 

43,274

 

 

 

51,284

 

 

 

103,878

 

 

 

128,897

 

 

 

 

 

 

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment expenditures

 

(2,992

)

 

 

(3,089

)

 

 

(12,258

)

 

 

(9,993

)

Proceeds from company owned life insurance plans

 

454

 

 

 

-

 

 

 

454

 

 

 

-

 

Acquisitions, net of cash acquired

 

-

 

 

 

-

 

 

 

(94,375

)

 

 

(184,024

)

Net cash used for investing activities

 

(2,538

)

 

 

(3,089

)

 

 

(106,179

)

 

 

(194,017

)

 

 

 

 

 

 

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

  Dividends paid

 

(12,634

)

 

 

(11,770

)

 

 

(35,936

)

 

 

(31,791

)

  Proceeds from exercise of stock options

 

-

 

 

 

-

 

 

 

140

 

 

 

554

 

  Repurchase of common stock for treasury stock

 

(55,547

)

 

 

-

 

 

 

(119,014

)

 

 

-

 

Net cash used for financing activities

 

(68,181

)

 

 

(11,770

)

 

 

(154,810

)

 

 

(31,237

)

Effect of foreign exchange rates on cash

 

(360

)

 

 

60

 

 

 

(977

)

 

 

2,745

 

 

 

 

 

 

 

 

 

 

 

 

 

(Decrease) Increase in cash and cash equivalents

 

(27,805

)

 

 

36,485

 

 

 

(158,088

)

 

 

(93,612

)

Cash and cash equivalents - beginning of period

 

95,733

 

 

 

165,208

 

 

 

226,016

 

 

 

295,305

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents - end of period

$

67,928

 

 

$

201,693

 

 

$

67,928

 

 

$

201,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-more-

 

 

APPENDIX

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BADGER METER, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RECONCILIATION OF NON-GAAP PERFORMANCE MEASURES TO GAAP PERFORMANCE MEASURES

 

(in thousands, except share and earnings per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2026

 

 

UDlive

 

 

Base

 

 

2026

 

 

UDlive

 

 

Base

 

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

235,938

 

 

$

5,639

 

 

$

230,299

 

 

$

660,536

 

 

$

7,663

 

 

$

652,873

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, engineering and administration

 

 

51,107

 

 

 

2,272

 

 

 

48,835

 

 

 

151,659

 

 

 

4,080

 

 

 

147,579

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings (loss)

 

 

47,742

 

 

 

(276

)

 

 

48,018

 

 

 

122,290

 

 

 

(1,524

)

 

 

123,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating earnings as % of sales

 

 

20.2

%

 

 

-4.9

%

 

 

20.9

%

 

 

18.5

%

 

 

-19.9

%

 

 

19.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* UDlive results are included from the date of acquisition of May 1, 2026.

 

** UDlive amortization was $1.2 million and $2.0 million for the three months and nine months ended September 30, 2026, respectively and reported as part of Selling, engineering and administration expenses.

 

*** UDlive results include $0.5 million and $0.7 million for the three and nine months ended September 30, 2026, respectively, of inventory step-up amortization associated with acquisition accounting.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

###